BILL NUMBER: SB 513	CHAPTERED  09/22/05

	CHAPTER  261
	FILED WITH SECRETARY OF STATE  SEPTEMBER 22, 2005
	APPROVED BY GOVERNOR  SEPTEMBER 22, 2005
	PASSED THE SENATE  AUGUST 29, 2005
	PASSED THE ASSEMBLY  AUGUST 25, 2005
	AMENDED IN ASSEMBLY  JULY 12, 2005
	AMENDED IN SENATE  APRIL 13, 2005
	AMENDED IN SENATE  MARCH 29, 2005

INTRODUCED BY   Senator Soto
   (Coauthor: Senator Machado)
   (Coauthors: Assembly Members Calderon, Parra, and Vargas)

                        FEBRUARY 18, 2005

   An act to add Section 409.13 to the Military and Veterans Code,
relating to military benefits, and declaring the urgency thereof, to
take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 513, Soto  California National Guard: benefits and protection:
deferral of interest on financial obligations.
   Existing law provides certain protection for members of the
California National Guard and reservists called to active duty, as
specified, during the period of military service, with respect to,
among other things, taxes or assessments, health or medical
insurance, and death benefits payable to the surviving spouse or
designated beneficiary of any member of the California National
Guard, as specified.
   This bill would create an additional benefit, subject to specified
limitations, for members of the California National Guard killed in
the line of duty in the service of the state or federal government by
requiring a deferral, without penalty or accrual of any additional
interest, for a period of 6 months after the member's death, of any
interest on a financial obligation or liability, as specified,
incurred by that member, or his or her surviving spouse, including
any financial obligation or liability incurred by the member for
which the member's beneficiary, as defined, is liable, before the
member's entry into service.
  This bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 409.13 is added to the Military and Veterans
Code, to read:
   409.13.  (a) To the extent permitted by federal law and the
California Constitution, any principal and interest on any financial
obligation or liability bearing interest and incurred by a member of
the California National Guard or his or her surviving spouse, or any
principal and interest on any financial obligation or liability
bearing interest incurred by a member of the California National
Guard for which the beneficiary of that member is liable, shall be
deferred for a period of six months after the death of the member
without penalty or accrual of any additional interest.
   (b) For purposes of this section, the following terms have the
following meanings:
   (1) "Interest" includes service charges, renewal charges, fees, or
any other charges with respect to any obligation or liability.
   (2) "Beneficiary" means a beneficiary of the deceased member of
the California National Guard who is or has become, after the member'
s death, liable for any of the member's financial obligations or
liabilities bearing interest.
   (c) This section shall only apply:
   (1) To a member of the California National Guard that is killed in
the line of duty in the service of the state or federal government.

   (2) When a member's surviving spouse or other beneficiary provides
written notice of the death of the member to the financial
institution to which he or she is liable and from which he or she is
requesting deferral of interest and payments as set forth in this
section.
   (3) To a financial obligation or liability bearing interest that
was created between a private entity and a member of the California
National Guard or his or her surviving spouse, or to a financial
obligation or liability bearing interest that was created between a
private entity and a member of the National Guard for which the
beneficiary of that member is liable, before that member's entry into
service.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to provide immediate relief to surviving spouses and
certain beneficiaries of deceased members of the California National
Guard, it is necessary for this act to take effect immediately.